94 JAAP BROEKEMA
- What are the strengths and weaknesses of the current form of privatisation of
solid waste collection?
The discussion is confined to the dominant public-private arrangement in solid waste
collection, namely the contracting out of sweeping services and solid waste collection
in the planned residential areas of the MCH to private firms^1. The costs of the service
are fully met by property tax revenues. Plans are being developed to introduce ‘user
based garbage collection charges’. However, rumours have it that residents will once
again be exempted from paying for political reasons (Interview AMOH, 1999; The
Hindu, 2/18/99).
5.2. TERMS OF REFERENCE FOR PRIVATISED SOLID WASTE COLLECTION
The main reason for the MCH to transfer part of its solid waste collection tasks to the
private sector arose from the impossibility to increase its current workforce despite the
city’s continued expansion. Other factors played a role as well. For instance, the
Supreme Court stated that sweeping of main roads should be finished before the
opening of the commercial establishments in the morning. This obliged the MCH to
introduce night sweeping. However, this work could not be taken up by MCH
labourers who fiercely opposed the idea of working night shifts and were able to
defend their views due to their strong legal position and the resistance by the labour
unions.
The first significant attempt to privatise the solid waste collection-services was
launched in 1994 when 10 percent of the MCH areas were privatised (MCH, 1998a).
In 1996 more areas were handed over to the private sector and by 1998 almost 25
percent of the MCH area was under privatised service (MCH, 1998a). Initially the
contractors were operating under either the lowest bid system or the fixed volume
system. The lowest bid formula implied that the MCH indicated the areas and was
calling for tenders from private contractors Entrepreneurs were asked to quote the
rates for sweeping and lifting the garbage for the entire area on a daily base. The
second system was based on payment according to the amount of garbage lifted. The
contractors were asked to quote the rates for one Mt. of garbage and subsequently, the
lowest tender was awarded with the contract for sweeping and garbage lifting in a
particular area.
- A unique feature of the solid waste collection-system in Hyderabad is the involvement of the commu-
nity under a tricycle scheme. Community appointed waste pickers take care for the house-to-house
collection in almost 1,200 colonies, with each colony comprising 100-200 households. The residents
pay a monthly fee of Rs 10-20 – the 1999 rate was about Rs 40 for 1 US$ – and the MCH is bearing
the cost of the tricycle (Sudhakar Reddy and Galab, 2000; see chapter 3).